The Queensland floods will further slow the state’s economic growth, Treasurer Tim Nicholls has admitted. The damage bill is expected to top $2.4 billion.

The federal and state governments are expected to finalise within days a funding agreement to begin rebuilding public infrastructure in central and western Queensland. Mr Nicholls for the first time said that the floods may affect the state budget, which is due in June. The state’s peak resources group estimates the coal industry is likely to suffer a shortfall of $500 million, or 3.5 million tonnes, this financial year from the closure of the Blackwater and Moura rail lines to the Port of Gladstone. About $50 million less in royalties is expected to flow into state government coffers as a result.

The closure of the rail link has contributed to about 30 ships waiting off Gladstone. Another dozen ships are expected to arrive in the next week.Aurizon (formerly QR National) is hoping to open the Blackwater line (which exports 55 million tonnes a year) by the end of the week, and the Moura line (15 million tonnes a year) by February 25.Queensland Premier Campbell Newman last week said he expected the total damage bill from the floods caused by cyclone Oswald to be around $2.4 billion.Mr Nicholls said he believed the damage to public infrastructure, loss of crops and delays to coal exports could push the bill higher.“I think that in terms of total cost, the cost of rebuilding and economic loss will continue to grow," he said.

“In terms of the impact on the budget, until we know the quantum it’s going to be very difficult for us to work out the actual impact, but there is no doubt I think there will be an impact on the rate of growth in the state."

Queensland’s economic growth was downgraded from 4 per cent to 3.75 per cent in the mid-year budget update released in December.

If Queensland’s economic growth is further downgraded it could affect the Newman government’s plans to return the budget to surplus in 2014-15.

Mr Nicholls said the Queensland government remained committed to delivering a national partnership agreement (NPA) with the Commonwealth to help begin the rebuilding process in flooded communities.

He said an extension of the NPA that had been in place from the 2011 floods would be the best way to fast-track funds.

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But Mr Nicholls said he would be pushing for a relaxation of the new rules brought in by the federal government last December in relation to the funding of social infrastructure like community facilities and sporting grounds as well as the requirement the commonwealth signs off on expenditure over $1 million.

Under the revised funding deal, the commonwealth is still expected to pick up the bulk of the damage bill for the Queensland floods.

Federal Treasurer Wayne Swan said it was far too early to estimate the impact of the latest natural disaster on the federal budget.

Meanwhile, last month’s floods allowed 28 coalmines to release about 10 gigalitres of salty water into local river systems left over from the 2010-11 floods.

But there is still more than 240 gigalitres of water in Queensland mines, which can be discharged only when there are high river flows.

The releases were monitored by the state government to ensure environmental standards were met.